Parliament Scrutinises Sassa Over SRD Grant Fraud Uncovered

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The recent detection of fraud in Sassa's Social Relief of Distress (SRD) grant system has put the agency under intense parliamentary scrutiny.


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Social Development Minister Nokuzola Tolashe announced that the South African Social Security Agency (Sassa) will be subject to increased oversight, with reforms aimed at restoring the agency’s integrity. 

We take these anomalies seriously and are determined to restore the integrity of our social security system,

Two Stellenbosch University students, Joel Cedras and Veer Gosai, recently presented their findings to the Portfolio Committee on Social Development, revealing cases of fraud within the SRD grant system. The students discovered that fraudsters were using unsuspecting citizens' identity numbers to apply for SRD grants, diverting funds to bank accounts associated with these stolen IDs—preventing eligible recipients from accessing assistance.

Following the students' findings, the Portfolio Committee on Social Development has given Sassa 30 days to investigate the identified vulnerabilities in the SRD application and payment system. Sassa is expected to provide a detailed report on the investigation, as requested by the Minister.

New Measures to Prevent Fraud

In response to the fraud allegations, Minister Tolashe announced a series of anti-fraud initiatives, including enhanced oversight, investment in data analytics, and collaboration with agencies like the National Prosecuting Authority (NPA) and Special Investigating Unit (SIU).

“We have implemented stringent measures to detect and prevent corruption, enhancing oversight mechanisms to ensure that Sassa’s payment system is transparent and can hold those in positions of power accountable,” the Minister stated.

Sassa spokesperson Paseka Letsatsi revealed that the agency plans to introduce a nationwide biometric security system to combat fraud. Additionally, Sassa will soon require applicants to have smart IDs to qualify for the SRD grant. Unlike other grants, SRD applications can only be submitted online and are not accepted in person at Sassa offices.

Portfolio Committee Chairperson Bridget Masango raised concerns about persistent financial mismanagement within the Department of Social Development. She noted that the Office of the Auditor-General has repeatedly flagged irregular expenditure in the department, casting doubt on its capacity to manage a large budget effectively.

Parliamentary Members Criticise Sassa’s System Failures

Democratic Alliance (DA) Member of Parliament Alexandra Abrahams argued that "Sassa has become synonymous with fraud and corruption," citing issues such as unauthorised deductions, payments to deceased individuals, and duplicate payments. Abrahams also criticised the exclusion of the two students from receiving the SRD grant, even though they qualified, stating that Sassa has done little to prevent further system failures.

Nhlamulo Ndhelwa from uMkhonto weSizwe added that Sassa has failed to cross-reference data with other government agencies to prevent fraud effectively. He suggested implementing means tests and cross-checking data with Home Affairs, the public sector salary system, SARS, and company registers to block ineligible applicants, including inmates and deceased individuals.

Ndhelwa claimed that organised syndicates are exploiting the SRD system with the help of corrupt administrators who enable illegal identities and recipients to receive payments. “These administrators are the true enablers of the fraud and corruption we face today,” he said.

Economic Freedom Fighters (EFF) member Noluvuyo Tafeni echoed concerns about Sassa's vulnerabilities, stating that 

The system remains so weak that fraudsters slip through the agency’s payment system without being caught, leading to significant financial losses. 

Tafeni further alleged that influential figures within Sassa protect politically connected individuals, undermining effective oversight.

Suggested Article:

sassa outreach

The Social Relief of Distress grant is the only financial support available to unemployed individuals living in South Africa. There is a way to check your Sassa SRD grant appeal status for November 2024. 

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